Audit Reports
Indirect Tax
Report No. 24 of 2010 - Compliance Audit on Indirect Taxes – Customs Union Government, Department of Revenue
Overview
The Report has a total revenue implicationof Rs. 46.91 crore covering 22 paragraphs. We had issued another 102 paragraphs inviolvging money value of Rs. 32.71 crore on which rectificatory action was taken by the department/Ministry inthe form of issuing show case notices, adjudicating of show cause notices and recovery of Rs. 18.01 crore.
Duty foregone under various export promotion schemes during the year 2009-10 was Rs.52,606 crore which was approximately 63 per cent of the total receipts of customs duty. In the last five audit reports (including current year's report), we had included 711 audit paragraphs involving Rs.417.53 crore. Of these, the Government had accepted audit observations in 608 audit paragraphs involving Rs.261.11 crore and had recovered Rs.78.64 crore.We detected incorrect assessment of customs duty totalling Rs.37.94 crore. These arose mainly due to delay in presentation of Bills of Entry, interest paid on Terminal excaise duty refunds, incorrect adoption of rate of duty, incorrect assessment of high sea sale and non-levy of safeguard duty etc.
Duty of Rs.4.06 crore was short levied due to incorrect application of exemption notifications.Revenue of Rs.3.32 crore was due from exporters/importers who had availed of the benefits of the duty exemption schemes but had not fulfilled the prescribed obligations/conditions.Duty of Rs.1.59 crore was short levied due to misclassification of goods.